Rupee Strengthens on IMF Deal Hopes, But Attack Clouds China Ties

• Rupee has appreciated against US dollar over last 3 months, reaching close to Rs277 amid hopes for fresh IMF inflows • Consistent rupee appreciation has forced exporters to sell dollar proceeds amid fears of further drops • Hopes for further dollar inflows have supported stable exchange rate • Suicide attack on Chinese engineers may jeopardize $300m Panda bond plan to raise funds from Chinese market • Attack may also affect PM's expected visit to China and future economic ties under CPEC